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Value Long Duration

Investment Objective

The Value Long Duration strategy seeks to achieve a total return that exceeds that of the Fund's benchmark, the Barclays U.S. Long Government/Credit Bond Index.

Description

The strategy uses a value-driven approach and seeks to generate return by investing in a portfolio of investment grade, fixed income securities. Long bonds for long liabilities—investing to correspond with liabilities—has been a powerful theme of the investment process for decades. The strategy is duration neutral, meaning that portfolio duration is set in an attempt to meet client objectives and does not incorporate interest rate forecasts or speculation.

The strategy seeks to add value by capitalizing on imbalances in the relationships among sectors and individual bonds. We believe that investing in undervalued sectors and bonds and selling expensive ones using a relative value assessment is the ideal process to capture value over the long term.

The strategy typically invests in US dollar-denominated fixed income including governments, corporate bonds, sovereign and supranational entities, as well as municipal bonds. There is no exposure to currency risk, high yield bonds or emerging market debt.

Management Team

The US Multi-Sector Fixed Income team is made up of several New York based portfolio managers dedicated to value-oriented fixed income investing, and are supported by an experienced team of more than 30 global credit analysts, with geographical and industry expertise.

Andrew B.J. Chorlton, CFA

Andrew Chorlton is Head of US Multi-Sector Fixed Income, based in New York. He leads the team responsible for all multi-sector strategies, including core, long duration, short duration and tax-aware strategies. Andy joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2007.

Andrew B.J. Chorlton, CFA

Andrew Chorlton is Head of US Multi-Sector Fixed Income, based in New York. He leads the team responsible for all multi-sector strategies, including core, long duration, short duration and tax-aware strategies. Andy joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2007.

Edward H. Jewett

Edward Jewett is a Portfolio Manager on the US Multi-Sector Fixed Income team. Todd joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 1988. At STW, Todd was Principal, Portfolio Manager and a member of the team responsible for managing multi-sector portfolios including core, long duration, short duration and tax-aware strategies.

Edward H. Jewett

Edward Jewett is a Portfolio Manager on the US Multi-Sector Fixed Income team. Todd joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 1988. At STW, Todd was Principal, Portfolio Manager and a member of the team responsible for managing multi-sector portfolios including core, long duration, short duration and tax-aware strategies.

Richard A. Rezek Jr., CFA

Richard Rezek Jr. is a Portfolio Manager on the US Multi-Sector Fixed Income team and a US Investment Grade corporate specialist, based in New York. Rick joined Schroders in 2013, following the acquisition of STW, where he had worked since 2002 as a Fixed Income Portfolio Manager. Prior to STW, Rick spent seven years as Vice President and Portfolio Manager at Loomis Sayles.

Richard A. Rezek Jr., CFA

Richard Rezek Jr. is a Portfolio Manager on the US Multi-Sector Fixed Income team and a US Investment Grade corporate specialist, based in New York. Rick joined Schroders in 2013, following the acquisition of STW, where he had worked since 2002 as a Fixed Income Portfolio Manager. Prior to STW, Rick spent seven years as Vice President and Portfolio Manager at Loomis Sayles.

Neil G. Sutherland, CFA

Neil Sutherland is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. Neil joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2008. Prior to that, Neil spent seven years at AXA Investment Managers, where he was the Senior Fixed Income Portfolio Manager responsible for credit and absolute return strategies.

Neil G. Sutherland, CFA

Neil Sutherland is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. Neil joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2008. Prior to that, Neil spent seven years at AXA Investment Managers, where he was the Senior Fixed Income Portfolio Manager responsible for credit and absolute return strategies.

Julio C. Bonilla, CFA

Julio Bonilla is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. He serves as a municipal bond specialist and joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010. Previously, Julio spent ten years with Wells Capital Management, where he was instrumental in developing their municipal derivatives strategy.

Julio C. Bonilla, CFA

Julio Bonilla is a Portfolio Manager on the US Multi-Sector Fixed Income team, based in New York. He serves as a municipal bond specialist and joined Schroders in 2013 following the acquisition of STW, where he had worked since 2010. Previously, Julio spent ten years with Wells Capital Management, where he was instrumental in developing their municipal derivatives strategy.

Lisa M. Hornby, CFA

Lisa M. Hornby is a US Fixed Income Portfolio Manager. Lisa joined Schroders in 2010 and is based in New York. Prior to Schroders, she was a Securitized Products P&L Analyst at Barclays Capital from 2007.

Lisa M. Hornby, CFA

Lisa M. Hornby is a US Fixed Income Portfolio Manager. Lisa joined Schroders in 2010 and is based in New York. Prior to Schroders, she was a Securitized Products P&L Analyst at Barclays Capital from 2007.

Eric Lau

Eric Lau is a US Fixed Income Portfolio Manager. Eric joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2009.

Eric Lau

Eric Lau is a US Fixed Income Portfolio Manager. Eric joined Schroders in 2013 following the acquisition of STW Fixed Income Management, where he had worked since 2009.

Investment Philosophy

Our investment philosophy for the strategy is based on the premise that pricing inefficiencies exist in the market and our ability to identify those offers the potential to pursue superior investment performance. The portfolio managers focus on identifying investment grade bonds or sectors whose valuations have become dislocated from the underlying fundamentals, primarily due to technical reasons. We believe that purchasing undervalued bonds and selling them once they are fully-priced rewards investors. Portfolio allocation is independent of the benchmark and customizable to a client’s risk appetite. Our sector and security weightings are made independent from the benchmark and our positioning reflects our value approach, as well as the attractiveness of the opportunities relative to the broad market.

Investment Process

The US Multi-Sector investment team is responsible for the implementation of the Schroder Value philosophy. Portfolio managers collaborate with the sector specialist teams as well as the credit analysts, both of whom follow a disciplined, rigorous framework that combines fundamental research with relative value assessment. Our fixed income process consists of four distinct steps:

Investment themes: Conduct in-depth proprietary market research (fundamental, quantitative and technical) to develop investment themes that will dominate markets over the long term

Portfolio strategy: Based on investment themes, develop and prioritize investment strategies which will determine optimal portfolio positioning across sectors. This is done in close collaboration with the sector specialist teams.

Portfolio construction: Implement strategies using a relative value framework with a focus on overall risk level and execute sector and security decisions using the input of the credit analysts and the traders

Risk management: Ensure that mandates are managed in a manner consistent with their performance objective and corresponding risk profiles. Our three pillar approach provides a framework to continually review and monitor portfolios

Literature

Investment Options*

Mutual Fund

Separate Accounts

Please consider a mutual fund's investment objectives, risks, charges and expenses carefully before investing. For access to the prospectus, please click the following link: prospectuses. To obtain any further information on any Schroders fund, please read the prospectus, call your financial advisor or call Schroder Mutual Funds at (800) 464-3108 for Individual Investors or (800) 730-2932 for Intermediaries/Financial Consultants. Read the prospectus carefully before investing.

*The strategies listed include those which may be subject to the ability to meet investment minimums and other specific criteria, and may not be directly available to U.S. retail investors.

There can be no guarantee these strategies will be successful or that the investment objective can be achieved.

Investment risks: All investments involve risks including the risk of possible loss of principal. The market value of the portfolio may decline as a result of a number of factors, including interest rate risk, credit risk, inflation/deflation risk, mortgage and asset-backed securities risk, U.S. Government securities risk, foreign investment risk and liquidity risk. Frequent trading of the portfolio may result in relatively high transaction costs and may result in taxable capital gains.

Schroders (Bermuda) Limited is an indirect wholly-owned subsidiary of Schroders plc and is licensed to conduct Investment Business by the Bermuda Monetary Authority.